What is a Hard Asset?

A hard asset is a physical, or tangible, asset. It is the opposite of an intangible asset.

How Does a Hard Asset Work?

Hard assets include financial instruments, property, deposit and savings accounts, and commodities (for example precious metals, crops, and oil). By contrast, intangible assets include patents and reputability.

Why Does a Hard Asset Matter?

Hard assets carry intrinsic value subject to fluctuations and may be traded in a primary or secondary market.